iGaming newbies can make progress, says a research firm
Internet casinos are widely seen as the next growth frontier in the gambling industry, with better long-term prospects than online sports betting. This suggests there may be room for new entrants to gain market share in this space.
Eilers & Krejeck Gaming (EKG) highlights the recent entry of Fanatics and Jackpocket into select iGaming markets in a new report. The study evaluates the likelihood that these new entrants pose a credible competitive threat to companies such as BetMGM, DraftKings, and FanDuel.
The Jackpocket casino app is closer to minimum profitability than the finished product (for example, we noticed that there is no cross-sell path between Jackpocket's lottery and casino apps, although depositing casino players can earn $10 in lottery credits),"Corresponds to electrocardiogram.
Jackpocket has its roots in the online lottery space, having recently launched an internet casino offering in New Jersey, while Fanatics has launched an iGaming platform in West Virginia.
Fanatics, Jackpocket may be competitors
With iGaming currently legal in only six states, the industry has room for long-term growth. 2024 is likely to bring positive headlines on the legislative front as more states seek new sources of tax revenue.
A broader competitive environment could favor emerging companies like Fanatics and Jackpocket. EKG noted that both operators targeting casual gamblers have the opportunity to gain additional iGaming market share in the long term. However, the quality of their mobile apps is crucial to their success. This applies to all competitors in the field.
"From an application quality perspective, the U.S. market remains homogeneous and largely uncontroversial. We expect market leaders to strengthen their product strengths in 2024, but we believe smaller brands will still have a presence in the market room to gain a foothold," the research firm added.
Mastery of advanced technology is crucial for operators to take full advantage of the possibilities of internet casinos. Analysts and operators are excited about the prospects for internet casinos as the road to legalization at the state level remains long. It's also a more profitable business than sports betting, and bettors are generally more loyal and spend more money than sports betting.
Penn fixes iGaming issues
While Penn Entertainment's recently launched ESPN Bet mobile sports betting app is off to an impressive start, the same can't be said for the operator's new Hollywood Casino offering. The brand is relaunching in partnership with ESPN Bet.
While ESPN Bet’s early OSB results were unimpressive, the same cannot be said for Hollywood, where GGR performance for parts of November appears to be in line with Barstool’s historical results. However, at this early stage we caution against over-interpretation of this delta, if any,” ECG observed.
The research firm also noted that Hollywood Casino runs the same technology stack as its predecessor Barstool, whose platform has generally performed well in previous reviews.
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Source: www.casino.org
